Steve Jobs said “people don’t know what they want until you show them.” Jobs is credited as being one of the greatest marketers of his time. Not only did he create products we didn’t know we had, he created products at a premium price. Having an iPhone over an Android creates status, especially with younger people.
Jobs left a lasting mark on strategies of companies all over the world. I saw a video on Twitter recently where a girl selected a Stanley cup from a rack of six and added a load of accessories to it; to hold chewing gum, her vape and McDonalds. These cups cost €50 each, so that’s €300 in cups as well as the cost of the holder and cup accessories. There was a time when expensive tea sets were the reserves of the rich!!
Stanley cups are marketing at women and its cost is put into the shade when it comes to the male must have…the Canada Goose jacket. These winter coats can cost up to €1,800. Everything they sell is at a premium price (a Canada Goose baseball cap is €250).
What is this type of spending on objects doing to people who fall in the trap of having to have these products?
The impact of this consumerism is a spend more approach to life. It will have an impact on younger people who are starting out on their working careers, people who typically start off on lower salaries. People don’t like going back either. You get used to shopping in higher end shops and buying premium products. These habits will last a lifetime, meaning your cost of living is high.
Of course, we only earn a finite amount of money. The more you spend, the less you are able to save and invest. That means you have accumulated a smaller pot of money (if there is a pot at all) for use in the future. And with a higher cost of living, you need a bigger pot of money than someone who has a more frugal lifestyle and invests money that they save each month.
Life is a lot more expensive than it used to be. Yes, earnings are much higher than they were previously too, but it is important that you ask yourself what do you want, not only now but in the future. Do you want to have a life of consumerism now but leave yourself with no choices in the future, or do you want to build wealth over time and provide yourself with lots of choices?
Steven Barrett
05 August 2024